Income Property Lending Program (IPL)

What is income property lending?

A: It is a financing program to lend to business customers for purchasing or re-financing an income generating/rental property held under a business.

Can I get a loan for an income property?

A: Yes, the Income Property Lending (IPL) program is designed specifically for income generating properties. Qualification of the loan will be on the basis of rental income generated from the property.

What is the difference between an investment property and an income property?

A: An investment property is a real estate held for gains to be made in the form of capital appreciation and/or rental income but an income property is held primarily for rental income, capital appreciation is a side benefit that is achieved by virtue of holding it for a period of time. For example, a property purchased and sold after some upgrades is an investment property and not income property.

Can I get a 30 year loan or financing on an income generating property?

A: The maximum loan amortization a business can avail for a an income generating property is 25 years.

What is the minimum down payment for income property lending program?

A: Business will have to make a down payment of at least 25% of the assessed value of the property.

What are the benefits of financing an income generating property?
A: Owning an income generating property with a down payment of only 25% of the assessed value helps business generate higher return on equity and additional income.

What is eligibility or qualification criteria?
A: Any small business with annual sales of up to $15,000,000 can apply for a loan under this program to purchase or re-finance multi residential, commercial, industrial, office or mixed-use property. 

How do I apply for the income property lending program?

A: Speak to your nearest Scotiabank Small Business Advisor to start your application.